Overview of International Financial Instruments Issued in Australia

Abstract

This paper gives an overview of the International Financial Instruments issued in Australia. It examines the regulatory structure of the Australian Financial market and then looks at the various international financial instruments available in the Australian market. These include inter alia., Exchange Traded Funds (ETF), MINIs, Contracts for difference (CFDs) etc. An in depth examination of MINIs and CFDs is attempted.The important role of financial markets in a modern economy and also the significant responsibility that rests on the market operators, regulators and participants collectively in those markets to promote an efficient and fair market place cannot be underestimated in any economy. While Australia is not immune from global economic and financial developments, a range of factors including a strong and well-managed economy and prudent financial regulation have supported the ongoing development of our financial markets. This is reflected, for example, in the establishment of a new market for covered bonds and the arrival of exchange competition for share trading. Initiatives being planned include the creation of a retail market for Commonwealth Government securities. Australia has been a popular destination for foreign investment because of its transparent legal system, robust economy and stable government. In 2010, important amendments were recently made to the Foreign Acquisitions and Takeovers Act 1975, which is reflective of the growing importance given to foreign investment in the country.